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Efficiency, productivity change and profitability in Taiwan's international tourist hotel industry
Chen, Li Hsueh
Wang, Kuo Liang
Chen, Li Hsueh
three-stage data envelopment analysis
|Issue Date:||2013-09-05 14:17:19 (UTC+8)|
The dissertation is a collection of three separate but related papers which are devoted to the empirical studies of the international tourist hotel industry in Taiwan. In addition to the introduction in chapter 1, three papers are presented in chapters 2 to 4, respectively. The empirical results in chapter 2 indicate that, in the first stage, the data envelopment analysis (DEA) models without the quasi-fixed and adjusted inputs overestimate the technical and pure technical efficiencies, but underestimate the scale efficiency of international tourist hotels so that the necessity of considering the existence of the quasi-fixed input is justified. The second stage uses the stochastic frontier analysis (SFA) model to purge the effects from exogenous variables and statistical noise. The SFA results show that the exogenous variables have significant influences on input slacks and pure technical efficiency. The degree of market concentration and hotel size have positive impacts on labor, food and beverage (F&B) expense and operating expense input slacks, as well as have negative impacts on pure technical efficiency. An international tourist hotel in the resort area has negative relationships with all input slacks and a positive relationship with pure technical efficiency. An international tourist hotel participating in the international and/or domestic hotel chain has positive relationships with labor and F&B expense input slacks, but has a negative relationship with other expense. Severe acute respiratory syndrome (SARS) has positive effects on labor and F&B expense input slacks and has a negative effect on pure technical efficiency. The financial tsunami has positive effects on labor and other expense input slacks and has a negative effect on pure technical efficiency. After adjusting the variable input data from the SFA results in the second stage, the efficiency-evaluation results in the third stage show that the technical inefficiency mainly results from the inappropriate production scale. In addition, international tourist hotels have an ample space to improve their technical and scale efficiencies. The efficiency-evaluation results also show that the conventional DEA models overestimate the technical and scale efficiencies, but underestimate the pure technical efficiency of international tourist hotels so that the usage of the three-stage approach is justified. Finally, international tourist hotels which mainly receive group visitors have the worst performance. In chapter 3, the empirical results show that, in the first stage, the Malmquist index without the quasi-fixed and adjusted inputs underestimates the productivity change so as to justify the necessity of considering the existence of quasi-fixed input. After adjusting the variable input data from the SFA results in the second stage, the productivity index in the third stage shows that the initial increase in productivity has been compensated by a decrease. The productivity growth or deterioration mainly results from the technological progress or regress and the scale efficiency improvement or deterioration. The results also show that the Malmquist index with the quasi-fixed input and without adjusted inputs underestimates the productivity change. The key factors of the productivity changes estimated by the Malmquist productivity index with the quasi-fixed and adjusted inputs are significantly different from those estimated by the Malmquist productivity index with the quasi-fixed input and without adjusted inputs so as to justify the usage of the three-stage approach. Finally, international tourist hotels with mainly receiving group visitors have the better improvement of productivity. The sources of productivity changes among receiving different types of visitors are different, but the scale efficiency change plays an important role in all types. In chapter 4, the empirical results indicate that the scale efficiency hypothesis is supported in Taiwan’s international tourist hotel industry. An international tourist hotel that mainly receives individual visitors and an international tourist hotel that simultaneously receives group and individual visitors have negative impacts on profitability. SARS and financial tsunami have negative effects on profitability.
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